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Expansions and Mergers & Acquisitions are the key Development Strategies Adopted by Leading Players in the global Fatty Alcohols Market

Fatty alcohols are aliphatic, high molecular weight, long carbon chain containing alcohols having a hydroxyl group attached to the terminal carbon. Fatty alcohols may contain either an even or odd number of carbon atoms. Fatty alcohols derived from natural sources are even numbered and the ones derived from synthetic sources are odd numbered. The properties of fatty alcohols vary along with its type. Carbon chain decides the type of fatty alcohols. These are short chain, pure & midcut, long chain, and higher chain. These are different kinds of alcohols which are used in a wide range of applications such as personal care & cosmetics, soaps & detergent, plasticizers, lubricants, flavor & fragrances, food products, and others, which includes textile and paper & pulp. The growth in the penetration of surfactant-based industries such as personal care & cosmetics, soaps & detergents, textiles, oil & gas, etc., as well as the flexibility in feedstock availability and extensive consumption for fatty alcohols in emerging clusters of Asia Pacific, are some of the factors driving the market for fatty alcohols. The global fatty alcohols market is estimated at USD 4.72 Billion in 2017 and is projected to reach USD 6.01 Billion by 2022, at a CAGR of 5.0% between 2017 and 2022.

Key companies manufacturing fatty alcohols were majorly involved in expanding their production facilities to strengthen their position in the market. It is the most preferred strategy adopted by the market players from 2013 to 2017. The fatty alcohols market is growing at a moderate pace, and the increase in the number of expansions indicates that manufacturers are expanding their manufacturing facilities to establish a strong foothold in the fatty alcohols market.

Mergers & acquisitions was the second-most preferred growth strategy by manufacturers. Major market players in the fatty alcohols market are forward as well as backward integrated, having an influential presence over the entire value chain ranging from palm plantation to serving end-use industries such as soaps & detergents, pharmaceuticals & cosmetics, oil & gas, polymer processing, textiles, automotive, and so on. Through this, companies aim at consolidating their positions on a global platform.

Wilmar International Ltd (Singapore) is the largest manufacturer of fatty alcohols in the world. Mergers & acquisitions was the most preferred strategy adopted by the company. In June 2014, Wilmar’s wholly-owned subsidiary, Wilmar Europe Holdings B.V. acquired Huntsman Corporation’s (US), European commodity surfactants business. The acquisition helped Wilmar broaden its existing footprint in Europe and extend its integrated chain to better serve customers in all geographies with quality products.

Kuala Lumpur Kepong Berhad (Malaysia) is another major fatty alcohols manufacturing company involved in the backward as well as forward integration of fatty alcohols. The company conducts its fatty alcohol business through its subsidiary KLK Oleo. The company, in September 2014, acquired TensaChem (Belgium), a key manufacturer of alcohol ether sulfates, alcohol sulfates and sulfonic acids. The acquisition helped the KLK Group establish positive synergies for its oleochemical operations in Europe and diversify the value chain of its oleochemical division's business.